What is an Electronic Credit Ledger under GST?
As per section 2(46) of the CGST Act, 2017, “electronic credit ledger” means the electronic credit ledger referred to in sub-section (2) of section 49. Section 49(2) states that the input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with section 41, to be maintained in such manner as may be prescribed.
In simple words, the Electronic Credit Ledger serves as the digital counterpart to the GST passbook. It contains a record of input tax credit availed and utilized in each month’s GSTR 3B along with the balance available.
How do I check my electronic credit ledger?
To view or download electronic credit ledger, below are the steps:
- Go to www.gst.gov.in
- Login using valid credentials
- Go to Services>>Ledgers>>Electronic Credit Ledger:
- Click Electronic Credit Ledger:
- Select period and click GO.
- Electronic Credit Ledger for the selected period will be displayed:
You can view multiple pages by clicking it on the numbers given below the ledger.
- You can download the ledger in PDF or Excel format using the following options below the ledger screen:
How to read Electronic Credit Ledger?
Credit amounts in the Electronic Credit Ledger denote Input tax credit availed in GSTR 3B- Table no. 4. It can also denote ITC claimed through any other forms or Transition forms.
Debit amounts in the Electronic Credit Ledger denote the Input tax credit utilized in GSTR 3B for adjusting outward tax liability. It can also denote an ITC reduction due to an ITC refund issued or otherwise. The description column specifies the reason for the debit.
Balance denotes the balance of Input tax credit available after each debit and credit entry.
Can we claim a refund of the electronic credit ledger?
If there is an excess balance lying in the Electronic Credit Ledger under specified circumstances, for example, ITC related to exports or due to an Inverted Duty Structure, a refund of such ITC can be claimed. When a refund is issued, such an amount is debited in the Electronic Credit Ledger, and the ITC balance gets reduced by such an amount.
Conclusion
The Electronic Credit Ledger is a vital component of the GST framework, serving as a digital record of input tax credit availed and utilized. By efficiently managing the credit ledger, taxpayers can ensure compliance with GST regulations and take advantage of available credits.
Additionally, the ability to claim refunds from the electronic credit ledger provides further flexibility and benefits to businesses operating under the GST regime.
